CBN Recapitalization Directive gets Critical, as Stanbic IBTC Bank PLC Berths in Safe Waters.
By Godson Ikoro
If all goes according to the on-going recapitalisation exercise of the Central Bank of Nigeria (CBN), its salutary impact on Nigerian banks will be a significant milestone in the history and development of the sector.
For Stanbic IBTC Bank PLC., one of the leading financial institutions in the country, this exercise will bring numerous benefits. It will become larger,smarter and stronger; sufficiently well- heeled to support the one trillion economy of Nigeria by 2030. Succinctly put, It will have higher capital buffers to mitigate potential risks and have stamina to withstand economic shocks.
It will also raise the bar in all ramification of its chosen segments. Although a tier two bank, Stanbic IBTC Bank PLC is arguably not under much pressure as other banks in meeting the March 2026 CBN deadline to increase its paid up capital to N500billion.
This stemmed from the fact that as at March 2025, the bank had already increased its capital base from N 25 billion to N471 billion.
Given its pedigree as a member of the Standard Bank Group, Stanbic IBTC Bank may have already met the target but has not officially announced it, as the bank has a history dating back to 2004- 2008, of being among the first to meet the apex bank’s recapitalisation deadline.
By shrewd calculus, permutation and differentiation, Governor of CBN, Olayemi Cardoso increased the capital base of different banks in the country, ranging from N500billion for banks that play in the international space; N200billion for National Banks; N50 billion for regional banks ; N50 billion for merchant banks; N20 billion for national non- interest banks and N10 billion for regional non interest bank.
The capital base of a bank simply refers to the bank’s net worth, which is the difference between its assets and liabilities. It represents the bank’s financial strength, stability, and ability to absorb potential losses.
For a compliant, Stanbic IBTC Bank PLC, a new phase has emerged with its attendant benefits and opportunities.
The bank will enjoy increased investor confidence. Given its international pedigree and affiliation with standard bank group, and Nigerian investors, Stanbic IBTC, Rights Issues was overwhelmingly oversubscribed by over 21.9percent. With over
N500+ billion the bank will become stronger and more attractive to investors worldwide.The bank which is already a super brand in Nigeria and enjoys high investors and shareholders confidence, will leverage its international goodwill to meet and surpass the recapitalisation target.
The bank will also enjoy increased lending capacity, as it is able to lend more to individuals and businesses,with increased single obligor limit, thus promoting economic growth and development. By way of explanation, the single obligor limit refers to the maximum amount of credit exposure that a bank can have to a single borrower or a group of connected borrowers. This limit usually set by regulatory bodies to prevent banks from taking on too much risk with a single entity, which could lead to significant losses if the borrower defaults. After March 2026, the single obligor limit of Stanbic IBTC Bank PLC will increase exponentially.
The management of the bank remains top notch.
Led by current MD/CEO, Mr Wole Adeniyi with over 30 years of experience in the financial services industry, Stanbic IBTC Bank will remain a bank to beat in the years ahead .
This is gleaned from its first quarter financial performance. Already the bank has reported a profit after tax of N82.06billion in quarter 1 of 2025. This stellar performance represented an impressive 80 percent growth compared to same period in 2024. The bank’s total asset grew by 7 percent to N7.40 trillion as at March 2025. The second quarter report will even be better than the first.
A recapitalized Stanbic IBTC Bank will do more because it has a thorough-bred management.
Moreover, the Trade Finance award won by the bank from Cosmopolitan Daily, already underscores the banks expertise in facilitating international commerce and empowering domestic businesses to expand globally.
The consolidated Stanbic IBTC Bank will compete more effectively with peers whether in the local or international market spheres. It would be recalled that Stanbic IBTC Bank also won the 2025 Customer Service of the year award at Industry Summit award. Although it is already wearing the toga of customer- centric, innovative and excellent service delivery, the post 2026 recapitalisation effect on the bank will be infinity.
Next, a recapitalized Stanbic IBTC Bank will also do more savings promo to encourage and reward the savings culture among its customers with more the the N130 million splashed in recent promo.
Additionally, Stanbic IBTC Bank known for its digital skills development, the bank will commit more to equipping Nigerians with skills development.
It is also expected that it’s international money remittance and receival of foreign money transfers, via Western Union and MoneyGram, at branches with options for direct credit to account or cash pick up will be geared up.
A compliant Stanbic IBTC Bank will raise the bar in off- shore banking; managing funds in multiple currencies and stepping up its diaspora, specialized banking services; account denomination in multiple currencies, and ability to access funds across the globe with partnerships.
Stanbic IBTC Bank will literally become unstoppable.
The bank already has a reputation for being the best paying bank in Nigeria, being stronger and larger will also rub off on the staff welfare.
Consequently, the recapitalisation exercise viewed from various prisms will bring about numerous benefits for Stanbic IBTC Bank PLC and other banks in the industry.
With Increased financial stability, improved banking services, increased access to credit , Stanbic IBTC will ultimately be contributing to the growth and development and transformation of Nigerian economy.
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